Russia approves flexible export duty on wheat, corn and barley

MOSCOW, 8 Feb – RIA Novosti. The Russian government has approved a “grain damper” – a flexible duty on the export of wheat, corn and barley, which will start working from June 2, as well as new subsidies to grain producers, within which all budget revenues from export duties on grain crops will be distributed, the Cabinet said.

“From June 2, Russia will begin to operate a flexible export duty on wheat, corn and barley. The formula for its calculation was approved by Prime Minister Mikhail Mishustin,” the statement says.

The duty for wheat will be charged when the world price is above $ 200 per ton – the rate will be 70% of the difference between the estimated export price and this base price, for barley and corn the mechanism is the same, but the base price will be $ 185.

“The flexible duty will be calculated weekly, based on data at the prices of the previous week. This will be done by the Ministry of Agriculture. The calculation of parameters for determining the duty based on data from registered export contracts will begin on April 1,” the government said.

By another resolution, the prime minister approved the rules for supporting agricultural producers within the framework of the grain damper mechanism. “Agricultural producers will be able to receive subsidies from the state within the framework of the grain damper mechanism. … Subsidies will be distributed to regions based on the volume of products produced. The size of the subsidy rate for agrarians will be approved by the regional authorities,” the statement says.

According to the document, all budget revenues from duties on the export of wheat and meslin, rye, barley, corn, rapeseed, sunflower and soybeans will be allocated to the regions for this purpose. At the same time, the total volume of state support for grain producers will not exceed 50% of their production and sale costs.

Author: wedocount

Leave a Reply

Your email address will not be published. Required fields are marked *